Mota-Engil Africa NV (LTS:0R6D) Quick Ratio : 1.12 (As of Dec. 2014)

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What is Mota-Engil Africa NV Quick Ratio?

The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. It is calculated as a company's Total Current Assets excludes Total Inventories divides by its Total Current Liabilities. Mota-Engil Africa NV's quick ratio for the quarter that ended in Dec. 2014 was 1.12.

Mota-Engil Africa NV has a quick ratio of 1.12. It generally indicates good short-term financial strength.

The historical rank and industry rank for Mota-Engil Africa NV's Quick Ratio or its related term are showing as below:

LTS:0R6D' s Quick Ratio Range Over the Past 10 Years
Min: 1.06 Med: 1.1 Max: 1.24
Current: 1.12

During the past 4 years, Mota-Engil Africa NV's highest Quick Ratio was 1.24. The lowest was 1.06. And the median was 1.10.

LTS:0R6D's Quick Ratio is not ranked
in the Construction industry.
Industry Median: 1.28 vs LTS:0R6D: 1.12

Mota-Engil Africa NV Quick Ratio Historical Data

The historical data trend for Mota-Engil Africa NV's Quick Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Mota-Engil Africa NV Quick Ratio Chart

Mota-Engil Africa NV Annual Data

Trend

Dec11

Dec12

Dec13

Dec14

Quick Ratio

1.24

1.06

1.08

1.12

Mota-Engil Africa NV Semi-Annual Data
	Dec11	Dec12	Dec13	Dec14
Quick Ratio	1.24	1.06	1.08	1.12

Competitive Comparison of Mota-Engil Africa NV's Quick Ratio

For the Engineering & Construction subindustry, Mota-Engil Africa NV's Quick Ratio, along with its competitors' market caps and Quick Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Mota-Engil Africa NV's Quick Ratio Distribution in the Construction Industry

For the Construction industry and Industrials sector, Mota-Engil Africa NV's Quick Ratio distribution charts can be found below:

* The bar in red indicates where Mota-Engil Africa NV's Quick Ratio falls into.

Mota-Engil Africa NV Quick Ratio Calculation

The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.

Mota-Engil Africa NV's Quick Ratio for the fiscal year that ended in Dec. 2014 is calculated as

Quick Ratio (A: Dec. 2014 )	=	(Total Current Assets	-	Total Inventories)	/	Total Current Liabilities
	=	(1198.609	-	95.02)	/	989.449
	=	1.12

Mota-Engil Africa NV's Quick Ratio for the quarter that ended in Dec. 2014 is calculated as

Quick Ratio (Q: Dec. 2014 )	=	(Total Current Assets	-	Total Inventories)	/	Total Current Liabilities
	=	(1198.609	-	95.02)	/	989.449
	=	1.12

Mota-Engil Africa NV (LTS:0R6D) Quick Ratio Explanation

The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.

In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.

The higher the quick ratio, the better the company's liquidity position.

Mota-Engil Africa NV Quick Ratio Related Terms

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Mota-Engil Africa NV (LTS:0R6D) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Mota-Engil Africa NV (LTS:0R6D) » Definitions » Quick Ratio

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.africa.mota-engil.com

Mota-Engil Africa NV was incorporated on October 31, 2012 by a notarial deed of incorporation as a private company with limited liability under the laws of the Netherlands. The Company is a provider of integrated engineering and construction services. The Company also provides other services, across its target markets in Sub-Saharan Africa. Its portfolio of services ranges from Engineering and Construction which includes infrastructure such as roads, railways, bridges and dams, mining services, civil construction works and real estate construction and services, Logistics which includes ports and other infrastructure management and Environment and Services which includes waste management and collection and water treatment and distribution. The Company currently operates in ten countries comprising its primary markets of Angola, Malawi and Mozambique as well as its other markets of Cape Verde, Ghana, SÃ£o TomÃ© and PrÃncipe, South Africa, Uganda, Zambia and Zimbabwe.

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